Oil Surges 4% as Traders Warn of Depleted Global Buffers and Hormuz Supply Risks

In a move reflecting the fragility of global energy markets to geopolitical disruptions, Brent crude futures jumped over 4% to reach nearly $88 a barrel. This surge is driven by acute supply crunch fears after the International Energy Agency (IEA) revealed that member countries have already released three-quarters of their 400 million-barrel emergency reserves. Furthermore, tanker crossings through the Strait of Hormuz have reportedly fallen to their lowest level in three weeks, heightening concerns over a potential supply bottleneck.

These developments coincide with escalating tensions between the US and Iran, placing additional pressure on a market already suffering from eroded protective buffers. According to reports from Reuters, the depletion of strategic reserves leaves the market without a safety net in the event of a full supply disruption through the Strait of Hormuz, which handles approximately one-fifth of global oil consumption daily. Analysts compare this situation to previous volatile periods, noting that markets currently lack the surplus previously provided by commercial and strategic stockpiles.

Looking ahead, traders are closely monitoring the upcoming OPEC meeting scheduled for later this month to assess any potential shifts in production policy. In the absence of confirmed real-time price data at this close, market attention remains fixed on field developments in the Middle East. Investors should watch for weekly US inventory reports as a key catalyst that could dictate short-term price direction, especially as global inflationary pressures persist.